US Defends Law Forcing Sale of TikTok App

This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)
This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)
TT

US Defends Law Forcing Sale of TikTok App

This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)
This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)

The Justice Department late Friday filed its response to TikTok's civil suit aimed at derailing a law that would force the app to be sold or face a US ban.

TikTok's suit in a Washington federal court argues that the law violates First Amendment rights of free speech.

The US response counters that the law addresses national security concerns, not speech, and that TikTok's Chinese parent company ByteDance is not able to claim First Amendment rights here.

The filing details concerns that ByteDance could, and would, comply with Chinese government demands for data about US users or yield to pressure to censor or promote content on the platform, senior justice department officials said in a briefing.

"The goal of this law is to ensure that young people, old people and everyone in between is able to use the platform in a safe manner," a senior justice department official said.

"And to use it in a way confident that their data is not ultimately going back to the Chinese government and what they're watching is not being directed by or censored by the Chinese government."

The response argues that the law's focus on foreign ownership of TikTok takes it out of the realm of the First Amendment.

US intelligence agencies are concerned that China can "weaponize" mobile apps, justice department officials said.

"It's clear that the Chinese government has for years been pursuing large, structured datasets of Americans through all sorts of manner, including malicious cyber activity; including efforts to buy that data from data brokers and others, and including efforts to build sophisticated AI models that can utilize that data," a senior justice department official said.

TikTok has said the demanded divestiture is "simply not possible" -- and not on the timeline required.

The bill signed by President Joe Biden early this year set a mid-January 2025 deadline for TikTok to find a non-Chinese buyer or face a US ban.

The White House can extend the deadline by 90 days.

"For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than one billion people worldwide," said the suit by TikTok and ByteDance.

- TikTok shutdown? -

ByteDance has said it has no plans to sell TikTok, leaving the lawsuit, which will likely go to the US Supreme Court, as its only option to avoid a ban.

"There is no question: the Act will force a shutdown of TikTok by January 19, 2025," the lawsuit said, "silencing (those) who use the platform to communicate in ways that cannot be replicated elsewhere."

TikTok first found itself in the crosshairs of former president Donald Trump's administration, which tried unsuccessfully to ban it.

That effort got bogged down in the courts when a federal judge temporarily blocked Trump's attempt, saying the reasons for banning the app were likely overstated and that free speech rights were in jeopardy.

The new effort signed by Biden was designed to overcome the same legal headaches, and some experts believe the US Supreme Court could be open to allowing national security considerations to outweigh free speech protection.

"We view the statute as a game changer from the arguments that were in play back in 2020," a senior justice department official said.

There are serious doubts that any buyer could emerge to purchase TikTok even if ByteDance would agree to the request.

Big tech's usual suspects, such as Facebook parent Meta or YouTube's Google, will likely be barred from snapping up TikTok over antitrust concerns, and others could not afford one of the world's most successful apps used by about 170 million people in the United States alone.



OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
TT

OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI is venturing into a territory long dominated by Google with the selective launch of SearchGPT, an artificial intelligence-powered search engine with real-time access to information from the internet.

The move, announced on Thursday, also places the AI giant in competition with its largest backer Microsoft's Bing search and emerging services such as Perplexity — a search-focused AI chatbot firm backed by Amazon founder Jeff Bezos and semiconductor giant Nvidia.

Shares of Google's parent company Alphabet ended 3% lower on Thursday after OpenAI's announcement.

OpenAI said it has opened sign-ups for the new tool, which is currently in the prototype stage and is being tested with a small group of users and publishers. The company plans to integrate the best features from the search tool into ChatGPT in the future.

"AI-powered search tools from OpenAI and Perplexity re-affirm search as a content engagement model but pressure Google to be better at its own game," Canaccord Genuity analyst Kingsley Crane said.

Google dominates the search engine market with a 91.1% share as of June, according to web analytics firm Statcounter.

SearchGPT will provide summarized search results with source links in response to user queries, OpenAI said in a blog post. Users will also be able to ask follow-up questions and receive contextual responses.

The company will give publishers access to tools for managing how their content appears in SearchGPT results. News Corp and The Atlantic are publishing partners for SearchGPT.

SearchGPT signals a closer collaboration between publishers and OpenAI, following content licensing agreements with major organizations like Associated Press, News Corp and Axel Springer.

"Newer AI-powered search providers could face challenges of their own, with Perplexity already facing pending legal action from publishers like Wired and Forbes, and Condé Nast," said Crane.

Major search engines have been trying to integrate AI into search since ChatGPT first launched in November 2022. Microsoft, through its early investment, adopted OpenAI technology for its Bing search engine, while Google rolled out AI-powered summaries for the wider public at its developer conference in May.

Google did not respond to a Reuters query on the potential impact of SearchGPT on its business.

Reuters had earlier reported on OpenAI's plans around AI search in May.